Pound to US Dollar (GBP/USD) Falls, GBP/EUR Exchange Rate Steady in Response to UK Labour Figures
The Pound Sterling to Euro (GBP/EUR) exchange rate ticked higher on Tuesday as markets reacted to the UK’s latest labour figures, with a strong increase in employment and reports showing basic pay outpaced inflation for the first time in over a year reflecting well on Sterling.
It remains unclear whether this will have an impact on the Bank of England’s (BoE) outlook for interest rates this year however, with the slide in wage growth (including bonuses) likely to be of some concern for policymakers.
GBP/EUR Exchange Rate Strengthens as German GDP Misses and Euro Falls
The Pound Sterling to Euro (GBP/EUR) exchange rate made some tentative gains on Tuesday following the release of some underwhelming growth figures from Germany.
This data revealed Europe’s largest economy slowed at a faster pace than expected in the first quarter, with weak trade being blamed for GDP plunging from 0.6% to 0.3%.
Looking ahead the final release of the Eurozone’s latest CPI figures could extend the Euro’s (EUR) losses later this morning, with the reading expected to confirm inflation slowed to 1.2% in April.
GBP/USD Exchange Rate Plunges as US Retail Sales Buoy the US Dollar
The Pound Sterling to US Dollar (GBP/USD) exchange rate slumped to its lowest levels of 2018 yesterday as the US Dollar’s rally continued on the back of the latest US retail sales figures.
US data revealed domestic retail sales rose 0.3% last month. While this was down from a revised 0.8% increase in March, it was enough to bolster US rate hike expectations and pleased investors who were looking for an excuse to jump back on the USD bandwagon.
GBP/CAD Exchange Rate Flat as Oil Prices Surge
The continued uptick in oil prices caused the Pound Sterling to Canadian Dollar (GBP/CAD) exchange rate to remain broadly flat in yesterday’s session, with the ‘Loonie’ fending off any advances as Brent crude pushed over $79 a barrel to its highest levels since late 2014.
Pound to Australian Dollar (GBP/AUD) Exchange Rate Stabilises
The Pound Australian Dollar (GBP/AUD) exchange rate ticked higher yesterday as the ‘Aussie’ (AUD) was pressured by rising US bond yields.
However, this advance came to a screeching halt overnight as Australia published its latest wage price index, with AUD rallying despite wages remaining subdued in the first quarter.
Pound to New Zealand Dollar (GBP/NZD) Exchange Rate Climbs as Risk Appetite Dwindles
The Pound New Zealand Dollar (GBP/NZD) exchange rate jumped around half a cent yesterday, with the surge in the US Dollar (USD) taking a bite out of market risk appetite, although a welcome uptick in prices at the latest Global Dairy Auction helped to stem some of the ‘Kiwi’s (NZD) losses.